☘️ The role of David Sacks – the 'crypto-AI tycoon' at the White House
• In December 2024, David O. Sacks was appointed as Senior Advisor in charge of AI and crypto in the Trump administration, without needing Senate approval.
• He plays a crucial role in shaping crypto policy, from establishing a Bitcoin reserve for the government to drafting stablecoin laws.
☘️ Mr. Sacks' statement about the stablecoin law soon to be passed.
• At an event hosted by Coinbase, Mr. Sacks stated that the Trump administration would soon bring the GENIUS Act (The US Stablecoin Innovation and Guidance Act) to the Senate for a vote.
• He emphasized that this event is the result of Mr. Trump's victory in the recent election, opening a new direction quite different from previous policies, including during Trump's first term.
☘️ Goals and impacts of the GENIUS Act
• Objective: To provide a clear legal framework for stablecoins – a type of digital currency pegged to the USD and backed by safe assets such as treasury bonds.
• Expected impact:
1. Increasing market confidence, attracting nearly 200 billion USD in stablecoins into a legal framework.
2. Boosting demand for treasury bonds as stablecoins develop, as more reserve assets are needed.
• The law has passed the cloture step (allowing it to be voted on), with the Senate expected to vote around 11/6/2025.
☘️ Developments in Congress
• The GENIUS Act has been approved by the committee and brought to the Senate floor, with majority support, including 15 Democratic senators.
• There are over 120 proposed amendments (many unrelated issues such as credit card fee regulations), which could prolong the debate.
• The law needs at least 60 votes to overcome a filibuster; it is highly likely to be passed and signed into law in the coming weeks if it passes the Senate.
☘️ Assessment
Benefits:
• Increase transparency, reduce legal risks for investors and crypto businesses.
• Contributing to financial stability, enhancing the role of treasury bonds as reserve assets.
Risks & controversies:
• The law may be burdened with unrelated provisions, deviating from the original goal.
• Risk of conflict of interest due to the relationship between the Trump administration, Mr. Sacks, and the crypto ecosystems, especially when the Trump family is believed to own stablecoin USD1.
🍀 Conclusion
• The GENIUS Act is approaching an important voting step in the Senate, supported by the White House and both parties.
• If passed, this will be the first federal law specifically dedicated to stablecoins, potentially giving a significant boost to the crypto and financial markets in the US.
• However, it is necessary to continue closely following the post-vote process, especially any amendments that may affect the content of the law.